In Tennessee, these reports are generated from auction market sales in which market reporters associated with the Tennessee Department of Agriculture record price, sex, weight, frame size, muscle score, flesh and group size of animals marketed through the sale that day. This data is then compiled into 50-pound weight increments based on the aforementioned information and an average price and price range are provided for each class of cattle.
There are more than 30 auction markets in Tennessee, but generally TDA reporters are only able to cover 11 or 12 auctions each week due to labor constraints. Thus, the data in the weekly market report only includes sales from those auctions covered by TDA reporters.
The purpose of market reports is to provide buyers and sellers with information to help level the playing field. Thus, it is important for the report to be representative of the majority of animals that are marketed in an area. When evaluating a feeder cattle market report, the reader may notice comments associated with some prices. These comments are used to further explain the prices received for certain animals. Comments commonly included on a report include fancy, fleshy, full and value added. These terms are used when an animal with certain characteristics brings a premium price or is discounted.
Feeder cattle reports are not the only market reports. USDA Market News produces several market reports that producers may not be as familiar with. One of the most prominent reports is the five-area weighted average prices for slaughter cattle. This report contains information on negotiated finished cattle trade from feedlots to packers on both a dressed and live basis. This information can be useful for producers who retain ownership of cattle in the feedlot and then market cattle to meat packers. Additionally, this report could help producers pricing animals they are direct marketing to local consumers.
USDA does not stop there with reporting for the livestock industry. USDA reports wholesale and retail beef prices, daily and weekly slaughter levels, import and export tonnage and the list could go on. The point is USDA is constantly working to increase information flow to cattle producers and consumers, and it is important to take advantage of the publically available information they work diligently to provide.
There are times when the information one is seeking is not publically available, but those instances are few and far between. The reports previously mentioned have several uses. One of the primary uses of feeder cattle reports is to help cattle producers have an idea of what their cattle are worth. Producers must have an understanding of the market and how it works if they intend to use a market report for valuing cattle. One must understand how breed, sex, weight, frame size, muscling, flesh score, gut fill and value added traits influence price and thus the final value. If there is certain information a reader is looking for then the use of a search engine on the internet can go a long way. If further assistance is needed, send an email to [email protected]
For more information, contact the UT-TSU Extension Office in Wilson County at 615-444-9584. You can also find it on Facebook or visit extension.tennessee.edu/wilson. Ruth Correll, UT Extension-TSU Cooperative Extension agent in Wilson County, may be reached at 615-444-9584 or [email protected]